MIRA INFORM REPORT

Report Date :

12.03.2013

IDENTIFICATION DETAILS

Name :	SESA GOA LIMITED
Registered Office :	Sesa Ghoar 20 EDC Complex Patto, Panjim – 403 001, Goa
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.06.1965
Com. Reg. No.:	24-000044
Capital Investment / Paid-up Capital :	Rs. 869.101 millions
CIN No.: [Company Identification No.]	L13209GA1965PLC000044
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Producer and Exporter of Iron Ore
No. of Employees :	4728 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 516520000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is a well established and reputed company having satisfactory track record. There appears some dip in the turnover and profitability of the company. Such a dip is due to increase in export duty, lower sales volume on account of ban in mining operation in Karnataka, closure of Orissa Operations. The market condition for the company seems to be unfavorable. The company is facing some difficulties due to the changes in government regulations. However, networth of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA+ (Long Term Bank Facility )
Rating Explanation	Continues on Rating Watch with Developing Implications. High degree of safety. It carry very low credit risk.
Date	31^st December 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Sesa Ghoar 20 EDC Complex Patto, Panjim – 403001, Goa, India
Tel. No.:	91-832-2460600
E-Mail :	cdchitnis@sesagoa.com
Website :	www.sesagoa.com
Factory 1 :	Mining establishments at Goa, Karnataka and Orissa
Factory 2 :	Metallurgical Coke (Met Coke) Division at Amona, Goa

DIRECTORS

As on 31.03.2012

Name :	Mr. Kuldip K Kaura
Designation :	Independent and Non-Executive Director
Name :	Mr. Gurudas D Kamat
Designation :	Independent Non-Executive Director
Name :	Mr. Jagdish P Singh
Designation :	Independent Non-Executive Director
Name :	Mr. Ashok Kini
Designation :	Independent Non-Executive Director
Name :	Mr. Amit Pradhan
Designation :	Whole-time Director
Date of Birth/Age :	57 Years
Qualification :	M.Sc.(Physics)
Experience :	34 Years
Date of Appointment :	15.01.1990
Name :	Mr. Prasun K Mukherjee
Designation :	Managing Director
Date of Birth/Age :	56 Years
Qualification :	B.Com (Hons.) F.C.A., A.I.C.W.A.
Experience :	33 Years
Date of Appointment :	14.04.1987

KEY EXECUTIVES

Name :	Czamarka Gustavo
Designation :	Head - Iron Ore Marketing
Date of Birth/Age :	37 Years
Qualification :	BA (Economics), PGDBM , Master International Management
Experience :	14 Years
Date of Appointment :	30.08.2010
Name :	Correia Afonso Lalita
Designation :	AVP – Corporate Finance
Date of Birth/Age :	49 Years
Qualification :	B.com , A.C.A.
Experience :	25 Years
Date of Appointment :	01.06.1990
Name :	Mr. Rai A.K.
Designation :	Wholetime Director
Date of Birth/Age :	60 Years
Qualification :	B.Sc. Mining Engineering 1st class Mine Manager Certificate
Experience :	35 Years
Date of Appointment :	14.04.1975
Name :	Mr. Buckley Peter
Designation :	Head - Exploration
Date of Birth/Age :	45 Years
Qualification :	B.Sc. Geology and Geophysics , Science (Honors) Geological Mapping
Experience :	20 Years
Date of Appointment :	03.08.2011
Name :	Mr. Gaonkar Gurudas
Designation :	Hydraulic Shovel Operator
Date of Birth/Age :	59 Years
Qualification :	Std III
Experience :	34 Years
Date of Appointment :	21.02.1977
Name :	Mr. Samant Rajendra
Designation :	Senior Mine Foreman
Date of Birth/Age :	60 Years
Qualification :	Std VIII
Experience :	34 Years
Date of Appointment :	07.03.1977
Name :	Mr. Radhakrishna N
Designation :	Associate General Manager - Maintenance
Date of Birth/Age :	61 Years
Qualification :	Diploma (Civil Engineering)
Experience :	36 Years
Date of Appointment :	09.08.1977
Name :	Mr. Gaunkar Vishwanath
Designation :	Senior Staffman
Date of Birth/Age :	59 Years
Experience :	33 Years
Date of Appointment :	06.02.1978
Name :	Mr. Dessai Vishnum
Designation :	Senior Officer - Purchase
Date of Birth/Age :	61 Years
Qualification :	MA (Economics)
Experience :	38 Years
Date of Appointment :	13.11.1978
Name :	Mr. Shetkar Shrikant
Designation :	Head Painter II
Date of Birth/Age :	60 Years
Qualification :	Std IV
Experience :	37 Years
Date of Appointment :	26.07.1982
Name :	Mr. Araujo Allen
Designation :	Associate Manager - Purchase
Date of Birth/Age :	28 Years
Qualification :	Diploma (Structural and Fabrication Engineering)
Experience :	52 Years
Date of Appointment :	28.05.1990
Name :	Mr. Prasanna Kumar T
Designation :	Associate General Manager - Operations
Date of Birth/Age :	52 Years
Qualification :	Diploma (Mine and Mine Surveying) , AMIE
Experience :	31 Years
Date of Appointment :	17.06.1994
Name :	Mr. Rajadhyaksh Prakash
Designation :	AGM - Production and Development
Date of Birth/Age :	61 Years
Qualification :	BE (Metallurgy), D.S.M.
Experience :	37 Years
Date of Appointment :	03.08.1992
Name :	Mr. Garudangiri Yogeesh
Designation :	AVP – Commercial
Date of Birth/Age :	55 Years
Qualification :	BE (Mechanical)
Experience :	32 Years
Date of Appointment :	31.07.1995
Name :	Mr. Singh Suresh
Designation :	Executive Director - WCL
Date of Birth/Age :	53 Years
Qualification :	B. Tech (Mining), First Class Manager’s Certificate of Competency
Experience :	31 Years
Date of Appointment :	03.06.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	479113619	55.13
Sub Total	479113619	55.13
Total shareholding of Promoter and Promoter Group (A)	479113619	55.13
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2275617	0.26
Financial Institutions / Banks	15105302	1.74
Insurance Companies	19313543	2.22
Foreign Institutional Investors	237340914	27.31
Sub Total	274035376	31.53
(2) Non-Institutions
Bodies Corporate	12303063	1.42
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	96014238	11.05
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	4632317	0.53
Any Others (Specify)	3002810	0.35
Non Resident Indians	1938129	0.22
Trusts	640687	0.07
Clearing Members	412860	0.05
Foreign Corporate Bodies	7794	0.00
Directors & their Relatives & Friends	3340	0.00
Sub Total	115952428	13.34
Total Public shareholding (B)	389987804	44.87
Total (A)+(B)	869101423	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	869101423	0.00

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others
Bodies corporate
Directors or relatives of Directors
Other top fifty shareholders
Total	100.00

BUSINESS DETAILS

Line of Business :

Producer and Exporter of Iron Ore

Products :

Item Code No.	Product Description
26011100	Iron Ore
89011004	Vessels
27040009	Metallurgical coke

GENERAL INFORMATION

No. of Employees :

4728 (Approximately)

Bankers :

• Canara Bank
• State Bank of India
• ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Loans repayable on demand from banks
Cash credit (Secured against hypothecation of finished goods, consumables, stores, book debts and lodgement of letters of credit)	15.000	33.100
Total	15.000	33.100

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Tower 3, 27^th - 32^nd Floor, Indiabulls Finance Centre, Eiphinstone Mill Compound, Senapati Bapat Marg, Elphinstone (West), Mumbai – 400 013, India
Tel. No.:	91-22-61854000
Fax No.:	91-22-61854501/4601
Ultimate Holding company:	· Vedanta Resources Plc
Intermediaries :	· Finsider International Company Limited · Twin Star Holdings Limited · Westglobe Limited
Subsidiaries :	· Sesa Resources Limited · Sesa Mining Corporation Limited · Bloom Fountain Limited · Western Cluster Limited · Goa Energy Private Limited (from March 2, 2012)
Associate (and an indirect subsidiary of the ultimate holding company):	· Cairn India Limited
Jointly Controlled Entity:	· Goa Maritime Private Limited
Fellow Subsidiaries:	Bharat Aluminum Company Limited · Hindustan Zinc Limited · Konkola Copper Mines · Sterlite Industries (India) Limited · Sterlite Iron and Steel Company Limited · Sterlite Technologies Limited · Talwandi Sabo Private Limited · The Madras Aluminum Company Limited · Twin Star Mauritius Holdings Limited · Vedanta Aluminum Limited · Vizag General Berth Cargo Private Limited
Enterprise in which significant influence is exercised by Key Management Personnel :	· Sesa Community Development Foundation

CAPITAL STRUCTURE

As on 31.03.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
1000000000	Equity Shares	Re. 1/- each	Rs. 1000.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
869101423	Equity Shares	Re. 1/- each	Rs. 869.101 millions

Notes:

a. Reconciliation of Equity Shares and Amounts Outstanding

Particulars	March 31, 2012
	Number of Shares	Rs. in millions
At the beginning of the year	869,101,423	869.100
Conversion of Foreign Currency Convertible Bonds	-	-
Pursuant to a scheme of amalgamation	-	-
At the end of the year	869,101,423	869.100

b. Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Re. 1. The equity shares have rights, preferences and restrictions which are in accordance with the provisions of law, in particular the Companies Act, 1956.

c. Shares held by holding / ultimate holding company and / or their subsidiaries / associates

Particulars	March 31, 2012
	Number of Shares	% of Holding
Finsider International Company Limited	401,496,480	46.20
West Globe Limited	44,343,139	5.10
Twinstar Holdings Limited	33,274,000	3.83

All the above entities are subsidiaries of Vedanta Resources Plc. Accordingly; Vedanta Resources Plc. is the ultimate holding company

d. Aggregate number of bonus shares issued and shares issued for consideration other than cash during the period of five years immediately preceding the reporting date.

Particulars	March 31, 2012
Equity shares allotted as fully paid-up shares for consideration other than cash pursuant to a scheme of amalgamation	9,398,864
Equity shares allotted as fully paid-up bonus shares pursuant to capitalization of reserves and securities premium account.	393,620,200

e. Details of shareholders holding more than 5% shares in the Company other than as shown in (c) above.

Particulars	March 31, 2012
	Number of Shares	% of Holding
Franklin Templeton Investment Funds	85,073,669	9.79

f. Terms of securities convertible into equity shares

For shares to be issued on conversion of Foreign Currency Convertible Bonds

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		869.100	869.100	831.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		128262.800	115019.000	71256.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		129131.900	115888.100	72087.100
LOAN FUNDS
1] Secured Loans		15.000	33.100	96.100
2] Unsecured Loans		35976.300	9680.100	19161.900
TOTAL BORROWING		35991.300	9713.200	19258.000
DEFERRED TAX LIABILITIES		851.000	631.000	592.000
TOTAL		165974.200	126232.300	91937.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9929.900	7598.700	5121.500
Capital work-in-progress		6810.000	5045.400	680.100
INVESTMENT		144206.200	94638.100	54786.400
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7572.900	6361.000	4086.600
	Sundry Debtors	4621.900	5068.800	2784.600
	Cash & Bank Balances	720.100	8913.200	23774.100
	Other Current Assets	0.000	141.200	392.700
	Loans & Advances	4520.000	14211.400	11111.900
Total Current Assets		17434.900	34695.600	42149.900
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7374.000	8771.600	5959.300
	Other Current Liabilities	2965.000	2935.400	1091.200
	Provisions	2067.800	4038.500	3750.300
Total Current Liabilities		12406.800	15745.500	10800.800
Net Current Assets		5028.100	18950.100	31349.100
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		165974.200	126232.300	91937.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	65134.500	74930.800	45947.800
		Hire of ship and transhipper	0.000	0.000	75.500
		Services and other proceeds	0.000	0.000	580.000
		Miscellaneous income	0.000	0.000	4094.500
		Other Income	3863.300	5152.000	0.000
		TOTAL (A)	68997.800	80082.800	50697.800
Less	EXPENSES
		Production and operational expenses	0.000	0.000	22267.500
		Administration expenses	0.000	0.000	738.700
		Cost of materials consumed	5721.600	3973.500	0.000
		Purchase of stock-in-trade	3670.100	5363.900	0.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	485.600	(121.300)	0.000
		Employee benefits expense	1914.400	1490.800	0.000
		Other expenses	27297.300	23825.100	0.000
		TOTAL (B)	39089.000	34532.000	23006.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		29908.800	45550.800	27691.600
Less	FINANCIAL EXPENSES (D)		4200.000	861.500	536.900
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25708.800	44689.300	27154.700
Less/ Add	DEPRECIATION/ AMORTISATION (F)		838.500	831.300	573.800
	Exceptional Items		660.900	0.000	0.000
	PROFIT BEFORE TAX (E-F) (G)		24209.400	43858.000	26580.900
Less	TAX (I)		7410.000	9530.000	5400.000
	PROFIT AFTER TAX (G-I) (J)		16799.400	34328.000	21180.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8769.700	2977.000	955.700
Less	APPROPRIATIONS
		General Reserve	5000.000	25000.000	16000.000
		Proposed Dividend	0.000	0.000	2700.600
		Dividend Tax	79.200	493.500	459.000
		Interim Dividend	3476.400	3041.800	0.000
	BALANCE CARRIED TO THE B/S		17013.500	8769.700	2977.000
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	51214.200	62589.300	40277.700
		Dispatch money	93.100	177.400	87.300
		Sale of Carbon Credits	79.400	44.400	0.000
	TOTAL EARNINGS		51386.700	62811.100	40365.000
	IMPORTS
		Raw Materials	3972.200	5097.000	3437.800
		Components and spare parts	139.200	172.100	141.100
		Capital Goods	276.200	1111.700	98.200
	TOTAL IMPORTS		4387.600	6380.800x	3677.100
	Earnings Per Share (Rs.)		19.33	39.98	26.11

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	13768.600	2857.700	2347.100
Total Expenditure	10911.700	2947.400	3433.100
PBIDT (Excl OI)	2856.900	(89.700)	(1086.000)
Other Income	1349.000	1980.200	1893.600
Operating Profit	4205.900	1890.500	807.600
Interest	1136.200	813.400	1014.900
Exceptional Items	(97.100)	0.000	0.000
PBDT	2972.600	1077.100	(207.300)
Depreciation	226.000	254.800	274.600
Profit Before Tax	2746.600	822.300	(481.900)
Tax	470.000	320.000	(660.000)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	2276.600	502.300	178.100
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	2276.600	502.300	178.100

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	24.35	42.86	41.78
Net Profit Margin (PBT/Sales)	(%)	37.17	58.53	57.85
Return on Total Assets (PBT/Total Assets}	(%)	88.47	103.69	56.23
Return on Investment (ROI) (PBT/Networth)		0.18	0.38	0.37
Debt Equity Ratio (Total Debt/Networth)		0.27	0.08	0.27
Current Ratio (Current Asset/Current Liability)		1.40	2.20	3.90

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----
26]	Buyer visit details	----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

Reg. No. :- WP / 467 / 2012

Stamp No. :- STM / 1154 / 2012

Case Status :

Pending (Final Hearing)

Petitioner :

1. UNITED MINE WORKERS UNION

Respondent :

1. M/S SESA GOA LTD.

Petitoner Adv. :

SHIVRAJ GAONKAR

District :

North Goa

Bench :

Single

Act :

Constitution of India

Category :

OTHERS (W.P)

Case Stage :

FOR ADMISSION - AFTER NOTICE

Hearing Date :

Wednesday, August 29, 2012

Application Maters	Connected Maters
No application matters	No connected matters

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Foreign currency convertible bonds	11090.700	9680.100
Other loans and advances
Packing credit in foreign currencies from banks	12794.000	0.000
Commercial paper [Maximum balance outstanding during the year Rs. 24697.500 millions (Previous year Nil)]	11254.900	0.000
Buyers’ credit	836.700	0.000
TOTAL	35976.300	9680.100

Note:

During the year ended March 31, 2010, the Company had issued 5,000 Foreign Currency Convertible Bonds (“FCCBs”) aggregating US$ 500 million at a coupon rate of 5% (net to bondholder).

The bondholders have an option to convert these FCCBs into shares, at a conversion price of Rs. 346.88 Per share and at a fixed rate of exchange on conversion of Rs. 48.00 per U.S. $ 1.00 at any time on or after December 9, 2009.

The conversion price is subject to adjustment in certain circumstances. The FCCBs may be redeemed in whole, but not in part, on or after October 30, 2012, subject to certain conditions. Unless previously converted, redeemed or repurchased and cancelled, the FCCBs fall due for redemption on October 31, 2014 at par.

Upto March 31, 2012, 2,832 FCCB’s have been converted into 39,188,159 equity shares.

A part of the FCCB proceeds aggregating Rs. 10408.600 millions (March 31, 2011 Rs. 7752.800 millions) has been utilised for the Company’s capital projects.

PERFORMANCE:

Sesa continues to focus on improving internal operational efficiencies, while aspiring to achieve higher performance levels. However, during the year, volumes were under pressure.

Iron ore production and sales were 13.8 and 16.0 mt in 2011-12 compared to 18.8 and 18.1 mt (17.4 and 16.4 mt excluding Orissa) in the previous year. External sales revenue from iron ore decreased by 3%, from Rs. 83870.000 millions in 2010-11 to Rs. 81120.000 millions in 2011-12.

The pig iron business’ sales volume decreased by 6% to 250,571 tonnes in 2011-12, while sales revenue grew, fuelled by better prices, by 8% to Rs. 7200.000 millions in 2011-12.

Sales and production volume of metallurgical (met) coke were at similar levels as last year, at 251,264 tonnes and 256,575 tonnes respectively in 2011-12. External sales revenue increased by 24% to Rs. 2000.000 millions in 2011-12.

Sesa’s net income from operations fell by 10% to Rs. 83100.000 millions in 2011-12. Operating cash profit (PBDT) declined by 43% to Rs. 3235.000 millions in 2011-12. PAT (including associate income) decreased 36% to Rs. 26960.000 millions, and diluted earnings per share were Rs. 31.01 in 2011-12. With effect from December 8, 2011, Cairn India Limited (CIL) became an associate company and accordingly, the Company’s share of profits in CIL, attributable to the period after acquisition till March 31, 2012, have been recognized in the consolidated financial results.

OUTLOOK

As stated earlier, the longer term perspective of the iron ore market remains stable with a gradual move towards equilibrium. Consensus expectations indicate a global deficit in iron ore continuing for the next two years, followed by pressure on prices as new mining capacities are added. Cost pressures, especially related to capital expenditure, uncertainty of imposition of fresh taxation by regulators and project delays could potentially constrain the speed at which new supply is added, which could be additional buoyancy for prices.

On the cost front, royalty rates, railway and road freight and export duties are expected to exert pressure on the Company, while volumes would continue to be challenged by uncertainties in policy decisions and hurdles in logistics. We continue to remain cautiously optimistic of overcoming such obstacles. The following will continue to be our strategic thrust areas for the year 2012-13.

Safety: Safety will continue to be paramount and at the forefront of all our operations. Our focus in 2012-13 will be to improve on the currently stellar safety performance in the pig iron and met coke businesses by further reducing near misses and incidents, and to work consistently and intensively to duplicate this performance in the iron ore (and associated) divisions.

Production: With a focus on enhancing operational efficiencies, we will continuously strive to restore performance levels to better the best performance in previous years. We look forward to Karnataka operations resuming to full-blown levels in the near term. The commissioning of our met coke and pig iron expansions take our capacities to 560 and 625 ktpa respectively and we look forward to full capacity utilisation rates during the year.

Cost Reduction and Process Optimisation: With increasing pressures from external factors pushing costs up, we look forward to initiating newer avenues to contain costs, with more and more technology interventions to improve efficiencies, simplify processes and ease inflationary impacts.

People Best Practices: We will continue our focus on people development, learning and other engagement initiatives towards making our organisation an exemplary workplace.

Stakeholder Perception: Our resolve to partner with our communities remains steadfast, as ever, and we are actively engaging with all stakeholders.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMBER, 2012

(Rs. in millions)

S. No.	Particulars	STANDALONE
		UNAUDITED
		Quarter ended 31.12.2012	Preceding Quarter ended 30.09.2012	Nine months ended 31.12.2012
1	Income from Operations (a) Sales / Income from operations	2509.900 242.100	3127.300 278.400	21006.400 719.500
	Less: Excise duty	2267.800	2848.900	20286.900
	Less: Ocean freight	0.700	49.700	1581.900
	(b) Other operating income	2267.100 80.000	2799.200 58.500	18705.000 268.400
	Total income from operations (net)	2347.100	2857.700	18973.400
2	Expenses
	(a) Cost of materials consumed	2533.200	1693.100	5586.000
	(b) Purchase of ore	(2.900)	117.700	1058.300
	(c) Changes in inventories of finished goods, work- in-progress and stock in trade	(1095.600)	(1036.000)	(2465.400)
	(d) Employee benefits expense	431.600	450.000	1383.800
	(e) Consumption of stores	170.800	505.200	1436.600
	(f) Contractors for inland transportation & other services - Inland transportation -	57.200	87.300	769.600
	Other services	282.300	478.400	1499.500
	(g) Export duty	-	95.300	3423.400
	(h) Depreciation and amortisation expense	274.600	254.800	755.400
	(i) Other expenses	809.500	555.100	2041.800
	(j) Net (gain) / loss on foreign currency transactions and translations (k) Less: Costs / expenses recovered	247.000	(1870.600)	760.000
	(k) Less: Cost / expenses recovered	-	1.300	(72.000)
	Total expenses	3707.700	1331.600	16177.000
3	Profit / (loss) from operations before other income, finance costs and exceptional items (1-2)	(1360.600)	1526.100	2796.400
4	Other income	1893.600	109.600	3352.200
5	Profit / (loss) from ordinary activities before finance costs and exceptional items (3+4)	533.000	1635.700	6148.600
6	Finance costs	1014.900	813.400	2964.500
7	Profit / (loss) from ordinary activities after finance costs but before exceptional items (56)	(481.900)	822.300	3184.100
8	Exceptional items	-	-	97.100
9	Profit / (loss) from ordinary activities before tax (7-8)	(481.900)	822.300	3087.000
10	Tax expense (Refer Note 5)	(660.000)	320.000	130.000
11	Net Profit / (loss) from ordinary activities after tax (9 - 10)	178.100	502.300	2957.000
12	Share of profit of an associate	-	-	-
13	Net profit / (loss) after taxes and share of profit/(loss) of an associate (11+12)	178.100	502.300	2957.000
14 15 16	Paid up equity capital (Face value Re.1) Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year Earnings per share (of Re. 1 each) before and after extraordinary items [*Not annualised] - Basic - Diluted	839.100 0.20 (0.07)	869.100 0.58 0.12	869.100 3.40 3.40

S. No.	Particulars	Quarter ended 31.12.2012	Preceding Quarter ended 30.09.2012	Nine months ended 31.12.2012
A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	- Number of shares	389987804	389987804	389987804
	- Percentage of shareholding	44.87	44.87	44.87
2	Promoters and Promoter Group Shareholding
(a)	Pledged /Encumbered
	Number of shares	-		-
	Percentage of shares (as a % of the total	-		-
	shareholding of promoter and promoter
	group)
	Percentage of shares (as a % of the total	-		-
	share capital of the company)
(b)	Non-encumbered
	Number of shares	479113619	479113619	479113619
	Percentage of shares (as a % of the total	100	100	100
	shareholding of promoter and promoter
	group)
	Percentage of shares (as a % of the total	55.13	55.13	55.13
	share capital of the company)

	Particulars	Quarter ended 31.12.2012
B	INVESTOR COMPLAINTS Pending at the beginning of the quarter Received during the quarter Disposed of during the quarter Remaining unresolved at the end of the quarter	- 4 4 -

(Rs. in millions)

Segment Information	Quarter ended 31.12.2012	Preceding Quarter ended 30.09.2012	Nine months ended 31.12.2012
	Unaudited
Segment Revenues
Iron ore	187.400	782.600	13010.500
Metallurgical coke	1363.000	1649.600	4169.500
Pig iron	1821.300	2157.900	5348.200
Power	-	-	-
Total	3371.700	4590.100	22528.200
Less: Inter-segment revenues
Iron ore	64.300	435.800	741.200
Metallurgical coke	960.300	1296.600	2813.600
Pig iron	-	-	-
Power	-	-	-
Total	1024.600	1732.400	3554.800
Net Revenue from Operations	2347.100	2857.700	18973.400
Segment Results - Profit / (Loss) before tax, finance costs, interest and investment Income and exceptional items
Iron ore	(1151.000)	1264.800	3426.100
Metallurgical coke	(264.600)	99.600	(670.800)
Pig iron	79.200	249.300	185.400
Power	(20.200)	(33.100)	(53.300)
Total	(1356.600)	1580.600	2887.400
Less: Finance Costs	1014.900	813.400	2964.500
Add : Interest and Investment Income	1889.600	55.100	3261.200
Add: Exceptional Items	-	-	97.100
Profit before tax	(481.900)	822.300	3087.000

Capital Employed	As at 31.12.2012	As at 30.09.2012	As at 31.12.2012
Iron ore	15062.300	16324.900	15062.300
Metallurgical coke	3566.700	3566.000	3566.700
Pig iron	7033.900	5404.100	7033.900
Power	1097.700	1063.800	1097.700
Unallocated	105328.300	105552.000	105328.300
Total	132088.900	131910.800	132088.900

NOTES:

1. These results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 24^th January, 2013. The statutory auditors have carried out a "Limited Review" of these results.

2. The Shareholders at the Court convened meeting held on June 19, 2012, have approved a Scheme of Amalgamation and Arrangement amongst Sterlite Industries (India) Limited, The Madras Aluminum Company Limited, Sterlite Energy Limited, Vedanta Aluminium Limited, and Sesa Goa Limited ("the Company") and their respective shareholders and creditors (the "Scheme") and also a Concurrent Scheme of Amalgamation of Ekaterina Limited with the Company and their respective shareholders and creditors (the "Concurrent Scheme"). The Scheme and the Concurrent Scheme are inter-conditional and the Concurrent Scheme coming into effect is a condition precedent to the effectiveness of the Scheme. Further, the name of the Company is proposed to be changed from Sesa Goa Limited to Sesa Sterlite Limited. The petitions for merger have been filed with and admitted by The High Court of Bombay, at Goa, in respect of which hearings have commenced. Pending Court approvals, no accounting impact of the scheme has been given in the above results.

3. The Company, through its wholly owned subsidiary, Bloom Fountain Limited has acquired the remaining 49% stake in Western Cluster Limited, Liberia ("WCL") for a cash consideration of Rs. 1836.800 millions. Post this acquisition, WCL has become a wholly owned subsidiary. WCL will develop the Western Cluster Iron Ore Project in Liberia which includes development of iron ore deposits, necessary transportation and shipping infrastructure for export of iron ore.

4. a) The Government Authorities have ordered suspension of mining operation of all mining leases in the State of Goa, stoppage of mining transport across the State of Goa and suspension of environmental clearance in September, 2012. In October, 2012 the Supreme Court has ordered suspension of all mining operations and transportation of iron ore of the mines in the State. In view of the foregoing, operations at the Company's mines in Goa remain suspended. The Company has filed an application before the Supreme Court seeking modification or vacation of the aforesaid order. The hearing in the Court is yet to commence effectively.

b) The Supreme Court of India had on August 26, 2011 ordered a ban on iron ore mining and direct sales in the State of Karnataka. Pursuant to the directions of the Supreme Court, the Central Empowered Committee has approved the Company's Reclamation and Rehabilitation plan at a provisional production capacity of 2.29 mtpa and the Company expects to commence mining in Karnataka, subject to obtaining the Court's approval. In the meanwhile, sale of inventory continue to be effected by e-auction through the Court appointed agency.

5. a) In view of the position outlined in Note 4 above, there has been a consequential reversal of current tax

charge made in the earlier quarters, to the extent of Rs. 510.000 millions.

b) Based on legal opinion, provision has not been made for Income Tax Demands aggregating Rs.14980.000 millions (including interest-Rs. 3070.000 millions and penalty-Rs.200 millions) for the Assessment Years 2009-10 to 2011-12, arising primarily on account of disallowances of EOUs benefit claims, in respect of which appeals have been/are being filed with the appropriate appellate authorities.

6. Exceptional items for periods: (a) in the current financial year pertain to expenditure in connection with the Company's Voluntary Retirement Scheme; and (b) in the prior financial year pertain to expenses incurred for the strategic investment in Cairn India Limited.

7. Profit before tax under standalone results of the Company includes tax free dividend income of Rs. 1755.700 millions (preceding quarter Rs. Nil, corresponding quarter Rs. Nil) from an associate which has been eliminated in the consolidated results as per Accounting Standard - 23. Hence, other income, profit before tax and profit after tax are strictly not comparable in the consolidated results with corresponding figures in the standalone results.

8. a) As Cairn India Limited has become an associate from December 8, 2011, the share of profit from associate in the quarter and nine months ended December 31, 2012 is not comparable with the corresponding relevant periods on consolidated basis.

b) In view of acquisition of Goa Energy Private Limited on March 2, 2012, the figures for the power segment for the quarter and nine months ended December 31, 2012 are not comparable with those of the corresponding relevant periods on consolidated basis.

9. Figures for the previous periods have been regrouped / rearranged wherever necessary to conform to the current period's classification.

CONTINGENT LIABILITY

Contingent Liability not provided for, in respect of: -

i) Guarantees (excluding the liability for which provisions have been made) amounting to Rs. 232.200 millions (Previous year Rs. 78.300 millions) given by the bankers in favour of various parties.

ii) Letters of Credit opened by the banks in favour of suppliers amounting to Rs. 1381.900 millions (Previous year Rs. 3631.300 millions).

iii) Bonds executed in favour of customs authorities in respect of export of iron ore Rs. 24748.200 millions (Previous year Rs. 1,6277.100 millions).

iv) Claims by custom authorities (under dispute) relating to differential export duty on export shipments Rs. 344.100 millions (Previous year Rs. 491.300 millions). The said amount is also included under bonds executed detailed in (iii) above.

v) Bills discounted under letters of credit with banks Rs. 1370.300 millions (Previous year Rs. 3539.000 millions).

vi) Disputed income tax demands of Rs. 2453.800 millions (Previous year Rs. 195.100 millions) including interest and penalty of Rs. 623.600 millions (Previous year Rs. 17.100 millions), where the Company is in appeal before Appellate Authority

vii) Disputed forest development tax amounting to Rs. 1953.600 millions (Previous year Rs. 1739.600 millions) levied by Government of Karnataka challenged by writ petition filed in the High Court of Karnataka. Hearing of writ petition before the High Court of Karnataka is pending. A bank guarantee amounting to Rs. 450.000 millions (Previous year Rs. 350.000 millions) has been furnished against this demand. Also, an amount of Rs.402.300 millions (Previous year Rs. 329.700 millions) has been deposited against the aforesaid demand and same is included under Short term loans and advances.

viii) Cess on transportation of Ore, coal and coke within Goa levied by Government of Goa under the Goa Rural Development and Welfare Cess Act, 2000 (Goa Act 29 of 2000) amounting to Rs. 983.500 millions (Previous year Rs. 731.600 millions) challenged by way of writ petition in the High Court of Bombay, Panjim Bench.

ix) Other claims against the Company not acknowledged as debts:

a) Dead rent on deemed mining leases for the period from 20.12.1962 to 23.05.1987 amounting to Rs. 1.000 million (Previous year Rs. 1.000 million) and royalty for the period from 20.12.1961 to 30.9.1963 amounting to Rs. 1.200 millions (Previous year Rs. 1.200 millions) sought to be levied by the Government pursuant to the Goa, Daman & Diu Mining Concessions (Abolition & Declaration as Mining Leases) Act 1987, challenged by Special Leave Petition before Supreme Court of India.

b) Claims related to commercial and employment contracts Rs. 42.600 millions (Previous year Rs. 74.000 millions).

c) Demand from Railway authorities towards stacking charges amounting to Rs. 40.900 millions (Previous year Rs. 40.900 millions) appealed before Kolkata High court and stay obtained. A bank guarantee amounting to Rs. 40.900 millions (Previous year Rs. 40.900 millions) has been furnished against this demand.

d) Others Rs. 33.200 millions (Previous year Rs. 33.200 millions).

The above amounts are based on the demand notices or assessment orders or notification by the relevant authorities, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company’s rights for future appeals before the judiciary.

FIXED ASSETS:

• Mining leases
• Mining concessions
• Land plots
• Road and bunders
• Buildings
• Plant and machinery
• Aircraft
• Vehicles
• Riverfleet
• Ship
• Furniture and fittings

PRESS RELEASE

SC MAY ALLOW SESA GOA'S K'TAKA MINES TO RESUME OPERATIONS

Feb 25, 2013

he Supreme Court may soon allow Sesa Goa's 6-million-tonne Narrain mine in Chitradurga to resume operations, which had stopped mining iron ore after the apex court banned mining in Karnataka in August 2011.

Supreme Court is likely to accept Central Empowered Committee's recommendation, made in the last week, for allowing all mines in category A and B to resume operations. Sesa Goa's Narrain mine falls in to the category B. The apex court is going to hear the Karnataka as well as Goa mining case continuously for the next three days.

Mining ban in Goa has heavily impacted the state's economy, which gets almost 50 percent of its revenues from export of iron ore. In an interview with CNBC TV18, P K Mukherjee, Managing Director, Sesa Goa explains effects of ban on Goa and also discusses some solutions to improve the situation.

Below is a verbatim transcript of the interview:

Q: Can you tell us what was the outcome of the Supreme Court hearings that were lined up last week?

A: Last week nothing has happened as far as iron ore mining is concerned. At fag end of Friday, Karnataka matters have started which is supposed to be going on from tomorrow morning. Although, I think during that last half an hour of Friday amicus curiae had told that there is no problem in accepting the Central Empowered Committee (CEC) report which says to grant resumption of mining for all A and B categories. So that takes our mines which are in B category also into account. Tomorrow morning onwards Karnataka matter is supposed to be dealt with. Various other issues are also being brought in by other counsels. So let us see how it pans out tomorrow onwards.

Q: Are you getting a sense that perhaps from hereon things will be speeded up? Do you have some idea as to when at least in Goa things will come back into shape and you will be allowed to mine considering that now there is a serious Current Account Deficit (CAD) issue as well?

A: The matter is in Supreme Court and it was kind enough to understand the importance of the matter. That is why last week they have set three days continuously in the forest bench which was not the case before. This week also apparently they have given three days continuously, Tuesday, Wednesday and Thursday. So after the Karnataka matter is dealt, Goa is in line. No effective hearing has taken place on Goa, so I cannot take a guess.

As far as your other point is concerned regarding the impact - it is known from the very beginning that what impact of such a big lock on Goa mining would be. Goa mining is totally export oriented because there are no takers in India.

22 yrs on, closed Sesa Goa mining site turns a shade greener

Apart from huge CAD, fiscal deficit, effects on foreign exchange reserves, another important aspect to take in mind here is that this market has been developed over the decades with very painstaking efforts by Goan miners. As you know Goa is mining for last six-seven decades,  while Japan, South Korea, Europe, besides China has been mining in the last decade or so. This market has been developed very painstakingly and nobody is waiting for the supplier as to when they resume supply. That is a huge concern and I think all of the planners and administration people including the court understand that and that is where the urgency is.

Goa is a small state, but it is still a state and state's economy is hugely impacted. One-third of the population is reeling under uncertainty. 25 percent of the broad state domestic product has gone and one-third of the state’s revenue has gone, so this is a huge issue.

In case of Goan mining for your audience I must tell almost 50 percent of the revenue goes to the exchequer in the form of export duty, government royalty and in the form of income tax.

Q: Do you think as and when you are able to mine and start exporting will you find Indian iron ore selling at a discount because of the risk premium?

A: It is more likely than not.

Q: You indicated that the Supreme Court will be hearing the Karnataka mining ban case till Thursday. Are we likely to get a resolution on Thursday itself or the resolution on category B mines is not going to come so quickly?

A: I am optimistic from the very beginning. It is a matter of time only. As far as our mines’ resumption is concerned, we must tell everybody one thing that Supreme Court is allowing the resumption of mining, but there are various other approvals including the Ministry of Environment and Forests (MoEF) approvals which are all lapsed, also needs to be in place. We are also requesting Supreme Court to give an appropriate directive to those ministries to give a temporary permit or something like that so that we can resume the operations fast.

Q: How long will these other approvals take, the likes from an MoEF? While the approvals are still coming through how high is the likelihood of you all getting a temporary license to go ahead and start mining?

A: As per the laid down laws of the land on expiry of any licenses you are supposed to apply for renewal one year in advance which in our case we have applied 16 months in advance. It is unfortunate that the concerned authorities have not processed those applications because they were under the impression that Supreme Court has banned it, so we have got nothing to do right now, but the matter has started being processed.

After Supreme Court has intervened and told that we have never told that no processing of applications should be done. However, it takes its own time. Being an Indian we know, in India these government approvals do not get done overnight. At state government level our forest clearance has been processed. Now it has to be moved to the central government MoEF and then it has to ultimately clear.

So that is why there is something called Temporary Work Permit (TWP). That is to be given by the MoEF for a defined timeframe, maybe six months or so or three months of so and for which we are requesting Supreme Court to issue an appropriate directive to MoEF to give us the TWP for that.

Q: Do you think that you will get some inventory liquidation permission from the court in Goa at least?

A: I am optimistic and we are hopeful. As I have spelt in brief that impact in Goa is huge and some economic activity on the mining front has to start very fast.

Q: Are you looking at starting your pig iron operations through imported iron ore?

A: This is always an option for us to evaluate. This is pure economics. We are running our pig iron operations in a very constrained way because of the iron ore availability issue as well as high cost. So this is an economic consideration which we are continuously evaluating.

However, currently as you know the iron ore price in the world market has also gone up in last couple of months and that is why at the moment in spite the domestic price is very high, economically it does not make much sense, particularly considering when you have to import you have to import a shipload of ore which is a big quantity as far as our pig iron plant is concerned.

SHORT TATA STEEL, SESA GOA, SAIL: AGARWAL

Feb 21, 2013

Shubham Agarwal of Motilal Oswal Securities is of the view that, one can short Tata Steel, Sesa Goa and Steel Authority of India (SAIL) from metal space.

Agarwal told CNBC-TV18, "If we look at some of the stocks in metal then Sesa Goa and Sterlite Industries are at a verge of a breakdown. So, one can look to go short on Sesa Goa for another 15 percent of downside is what we expect. Very similar setup is there in Steel Authority of India (SAIL) as well. So, stocks like Tata Steel, Sesa Goa and SAIL will be the most preferred stocks for going short in the metal space."

SAIL's trailing 12-month (TTM) EPS was at Rs 8.57 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was 8.91. The latest book value of the company is Rs 96.38 per share. At current value, the price-to-book value of the company was 0.79. The dividend yield of the company was 2.62%.

HOLD SESA GOA: SEKHAR

Feb 21, 2013

Phani Sekhar, Fund Manager, Angel Broking is of the view that one can hold Sesa Goa.

Sekhar told CNBC-TV18, “In the very near-term there are lot of catalysts. It is a different thing whether they materialize or not. However, downsides are also limited and to that extent upsides are also capped, but if one is a long-term investor it will be a good idea hold Sesa Goa, because this merged entity of Sesa Sterlite actually has a global size and currently although aluminium business is weak, the zinc business is more or less offsetting it, although there are no great upsides. So in the very near to medium-term the triggers might be allotment of a bauxite mine or clarity on iron ore mining or more importantly a draft mining. All these are potential upsides. So the investor can actually hold on and hope to see better prices on Sesa Goa.”

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.29
UK Pound	1	Rs.81.08
Euro	1	Rs.70.61

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.